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Engine/Transmission (1994 - 1998) Engine stops when on drive or reverse.

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Hope someone can help. I am frustrated. dodge 3500 diesel, automatic transmission, started to act like this a week ago. When put on drive or reverse with brake on the engine dies. If I catch it fast and push the fuel pedal it starts to go very slowly, especially when puling a loaded trailer. Once I reach 10-15 miles/hour it acts normally. I replaced the fuel filter, trany filter and oil, troutle positioning sensor, without any improvement. When I pool a loaded trailer and have to start from dead point on a very slight up hill, it does not move. Incidentally, a couple of days after it started doing tis, the 4wd dash board light comes on and off, mostly on. Not sure if it is related to my main concern. I had the truck scanned and no code. Thank you.
 
It could be something as easy as adjusting the idle speed. What is yours set at? Take some time to fill in a signature with pertinent information so we don't have to guess. All 12 valve Dodges are not the same. At least the year, model, auto trans & 4X4.
 
With the 4x4 light coming on by itself, it sounds like you should check for wiring issues. Perhaps the harness is chaffing on something and locking the torque converter?? I don't have any experience with Dodge autos, but I know that chaffed wiring will wreak all kinds of havoc on a Chebby auto...
 
My truck did the same before I fixed the idle. I had it die like 4 times when trying to back a trailer up to the straw trailers at lowes! It's just a 10mm wrench and some patience. The adjustment is a pain to get to if don't have long arms.
 
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